September 17, 2019

September 17, 2019
Print Friendly, PDF & Email
  • The Saudi energy minister Prince Abdulaziz bin Salman will hold a news conference before noon CST on Tuesday (Reuters)
    • The news conference should provide an update regarding attacks on Saudi oil facilities in Abqaiq and Khurais which have knocked out about 50% of Saudi production
  • Saudi Aramco notified a handful of customers that some crude deliveries in early October will be delayed to later this month (Bloomberg)
    • Citing sources wishing to not be identified, Bloomberg reports that delays at this moment range from a few days to weeks
    • AEGIS notes that the duration of outages will be key as to how much oil is pulled from global stocks
  • US President Donald Trump said on Monday that it looked like Iran was responsible for the attacks on Saudi Arabian oil facilities
    • Trump told reporters he wants to avoid war but “certainly it looks like it was Iran”
    • AEGIS notes that a conflict involving Iran and Saudi Arabia/US would add an additional premium to the market. Some of Monday’s surge in price likely incorporated the possibility of targeted attacks on those responsible
  • Natural gas is down 3.3c to $2.648/MMBtu
  • The EIA released their latest Productivity Report and stated well productivity will fall by 48 Mcf/d to 4.1 MMcf/d
    • The Appalachia and Haynesville both only grew by 0.2% in new-well gas production per rig
    • DUCs have fallen to their lowest level since November 2018 amidst a continued commitment to managing capital expenditures
    • Overall, gas production appears to have stalled with total productive capacity capping out around 92.0 Bcf/d
  • Gas prices could continue to benefit from forecasted warmer temperatures across the majority of the United States
    • Warmer weather is still forecasted to persist through the end of the month

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More